Nationalised banks in India works toprovide social welfare to the public.
They work to direct the funds to the underprivilegedand various sectors such as agricultural sector and small industries for theireconomic development since these are the sectors that contribute mostly to thenational income. Nationalised banks in India helps to control the privatemonopolies and also helps in reducing the regional discrepancies. They work toprovide banking facilities to the major rural areas of the country. Amajor criticism about nationalisation was that some banks were not nationalisedso that the businessmen may not have suffered. The government contended thatthe nationalised banks had maximum deposits with them and the other banks werenot in a position to influence the economy of the country. But there was a needto have complete control over the banks in order to expand the economy. Afterthe independence, when the people of India were deprived of banking facilitiesespecially in the under developed regions of the country, it was thenationalised banks that worked to escalate the banking facilities across thecountry.
Theresults of nationalisation of banks in India can be summarized as follows:Ø After nationalisation, the bankingindustry in India has made major progress and provides banking facilities toevery part of the country.Ø The public sector banks has played amajor role in organizing, saving and extending credits mostly in favour of theweaker sections of the society.Ø It has aroused the need for usingbanking services among the rural and remote areas of the country.Ø It has helped in the quick transferof funds from one place to another.Ø It has provided employmentopportunities for the educated youth of the country.Ø It has made credit available to thepeople such as agricultural labours and small traders at low interest rate.Ø It has helped to free the rural poorfrom the hands of the lenders.Ø It ensured the supply of credit tomany industrial activities.Ø It has ensured the use of funds for appropriateand desirable purposes in the society.Ø It has helped to remove regional differencein the economic development.Ø It has helped in the implementationof various welfare measures by the government.